Blockchain Efficiency and Cost Reduction in Asset Tokenization and Generative AI: Insights from Franklin Templeton CEO
Franklin Templeton CEO Jenny Johnson has made waves in the financial world with her recent comments on the potential of blockchain technology and generative AI. Speaking at the 27th Annual Milken Institute Global Conference in California, Johnson praised blockchain for its efficiency and cost reduction in asset tokenization.
Johnson revealed that Franklin Templeton conducted a parallel experiment for six to eight months, comparing traditional methods with blockchain technology for processing account records. The results were clear – blockchain was not only more cost-effective but also produced fewer errors.
The CEO emphasized that blockchain technology could revolutionize the investment industry, predicting that all ETFs and mutual funds could eventually transition to blockchain. This shift would lead to significant cost savings by eliminating the need for data verification between different systems.
Franklin Templeton is already a pioneer in the field, with the Franklin OnChain US Government Money Fund (FOBXX) being one of the world’s leading equity tokenized funds. The BENJI token representing the fund had a market capitalization of $368 million as of May 12, according to Dune Analytics.
In addition to blockchain, Johnson also discussed the role of generative AI in asset management. She believes that “data is the next oil next year,” highlighting the importance of data analysis in the AI race. Franklin Templeton has already introduced an AI bot to their help desk, capable of handling 60% of inquiries.
Looking ahead, Johnson sees the potential for highly personalized investment strategies through the use of AI. By leveraging different AI models, asset managers could tailor investment strategies to meet individual customer needs.
Overall, Johnson’s insights at the conference shed light on the transformative power of blockchain and AI in the financial industry. With Franklin Templeton leading the way, the future of investment management looks promising with these innovative technologies at the forefront.